When printing companies acquire and merge with other printing companies, the transactions can be complex, but they're usually straightforward. Most of what they consist of can be expressed in concrete business terms that satisfy lawyers, lenders, and accountants. The exception is the factor most crucial to the success of the deal: an intangible element that can't be measured, but must be mastered if the acquisition is to create a whole greater than the sum of its parts. This is the fit of company cultures, and in the three stories of mergers and acquisitions (M&As) shared here, the buyers were unanimous in identifying it as the linchpin of the entire exercise. A selling owner said the same thing (see sidebar on page 26), and an entrepreneur buying into the industry from outside also paid close attention to the human element in taking over management of the business she acquired (see related Q&A article on page 29). "Culture, culture, culture," emphasizes John Falconetti, chairman and CEO of Drummond, a Jacksonville, Fla.-based printing, mail, and fulfillment services provider that has completed acquisitions of eight companies in various places since 2010. For him, "shared core values" are paramount, and he insists on knowing they're present in the sellers he deals with. "I, personally, weigh the character of the seller to a very great degree," he says.
展开▼
